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Reported by Star-Bulletin staff & wire
Tuesday, April 18, 2000
Digital Island loses $92.7 mil
SAN FRANCISCO -- Digital Island Inc., which offers computer-network services for companies doing business on the Internet, said its fiscal second-quarter loss widened, though less than analysts expected, as expenses soared ninefold.The company, which developed its business in Hawaii before moving to San Francisco, said yesterday that its net loss was $92.7 million, or $1.49 a share, for the period ended March 31, from $8.9 million, or $3.77 a share, a year ago.
Analysts expected the company to post a loss of $1.51 a share. Revenue more than quadrupled to $11.3 million from $2.4 million.
Digital Island offers corporate clients a private computer network by leasing international, dedicated telecommunication circuits and reserving them for its customers. It also hosts Web sites for those clients. Web sites hosted on a private computer network operate much faster than if they run solely on the Internet.
Entrepreneur Ron Higgins started Digital Island in California in 1995. He moved it to Honolulu in 1996 but the firm later relocated to San Francisco. The company maintains a network operation center in downtown Honolulu.
Chemical company losing Brewer name
Brewer Environmental Industries LLC has started doing business as simply BEI and has posted a new sign with its new name and logo on its Pacific Street building just off Nimitz Highway. Steve Knox, BEI president, said the Brewer name has always associated the company with C. Brewer & Co., the old "Big Five" company now based in Hilo. Since BEI was spun off as a separate company more than a year ago, there is no longer any connection between the two, except that some C. Brewer & Co. owners also have a stake in BEI, Knox said. BEI, a distributor of industrial chemicals, fertilizers and agricultural chemicals and operator of a freight business and power plant on the Big Island, has branches on four islands and Guam, as well as offices in Japan and Oregon.
AES announces 2-for-1 stock split
ARLINGTON, Va. -- AES Corp., the largest U.S. power-plant developer and the owner of a coal-fired plant at Barbers Point, said today it will split its stock two for one after the price rose about 50 percent in the past year. AES shareholders will receive one additional share June 1 for each share held on May 1. The Arlington, Va.-based company has 207.2 million shares outstanding and a market value of about $15.9 billion. The company, which had 1999 sales of $3.3 billion, owns all or part of 123 power plants worldwide.
BP Amoco completes Arco acquisition
LONDON -- BP Amoco Plc, the world's third-biggest publicly traded oil company, said today it has completed a $33.1 billion buyout of Atlantic Richfield Co., more than a year after announcing a bid for the eighth-largest U.S. oil company. BP last month agreed to sell Arco's Alaskan oil fields to Phillips Petroleum Co. for $7 billion to win clearance from the U.S. Federal Trade Commission.